Gold Falls, Other Metals Rally as Political Uncertainty Subsides

Prices for gold fell today as the market sentiment was improving due to reduced political uncertainty in some of the world’s major economies. Other metals fared far better, rising during the Monday’s trading session.

The landslide victory of Prime Minister Shinzo Abe’s ruling party in Japan ensures a strong government that should be able to proceed with necessary reforms to reinvigorate economic growth. Meanwhile, Theresa May remained a single candidate for the Prime Minister seat in Great Britain, basically ensuring that she will lead the country during the process of exiting from the European Union.

Gold fell after the news as traders were feeling less need in safe haven assets. Yet the drop was limited as the Brexit and related fears stayed in the minds of investors. Additionally, chances for an interest rate hike from the Federal Reserve, while increased lately, remain very small, and the general consensus that it is highly unlikely for the Fed to hike rates this year. Such outlook is helpful for the metal.

Futures for delivery of bullion in August Mickey Mouse Clubhouse Bounce House edged down 0.11% to $1,356.9 per troy ounce as of 17:53 GMT on COMEX today. At the same time, September contract for silver climbed 1.17% to $20.34 per ounce. Spot price for platinum went up 0.32% to $1,100.85 per ounce while palladium rallied 0.97% to $624.17 per ounce. September contract for copper traded 1.3% higher at $2.1465 per pound.

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